Home Buying in Destin>Question Details

Summer White, Home Buyer in Panama City Beach, FL

Our underwriter is asking some very personal questions. What is legal for them to ask?

Asked by Summer White, Panama City Beach, FL Mon Mar 4, 2013

They asked why we moved to Florida, why we chose the house we did, and why are we not closer to my husbands work. We have always loved the area, plus my husband was offered a job here that is going to pay for him to finish school. The neighborhood we chose is not only gated but guarded where people cant just wait for someone to come with a code and drive through after them. It has a ton of amenities. We are 5-10 minutes from everything but his job, which is only 40 minutes away. We come from a town where we were an hour away from anything.

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13
I am a mortgage lender here in the panhandle and am sharing a Forbes article about the nature of underwriting today. They just have to cover all the bases. If your residence address is in one city and your job in another, they have to document why so they can prove you are in the correct loan product i.e. primary residence vs. second home or investment property.

http://www.forbes.com/sites/moneybuilder/2012/03/09/the-perf…

If you encounter any more hurdles with your current lender, give me a call anytime and I'll be glad to help.

Mike Tarleton
Sr. Mortgage Loan Officer
Bank of England
NMLS #264821
706-888-0980
mtarleton@englending.com
1 vote Thank Flag Link Tue Mar 5, 2013
Thanks Lisa, I got that corrected!! I'm definitely not in NY, too cold for me!!
Flag Sun Mar 17, 2013
MIke,
Since you are a lender in the Panhandle, why does your profile say Home Buyer New York, NY?
Flag Mon Mar 11, 2013
Hi Summer, I know it feels like an inquisition, but they need to know what your motivation is to find out if you are being honest in everything you are telling them. For example, it may be a way of determining if you are really getting a "primary home" residence rather than an investment or vacation property (which would change the interest rates, etc.). Some people try to mask an investment property as a residence so they qualify for lower interest.

Try to remember that they took huge hits during the downturn, and so their guidelines have changed and gotten very stringent. And, they know they can ask the questions and get the answers or you don't get the loan--they are holding all the cards. Want to feel really violated, apply for a job, and they run a credit check on you--I think that is a violation of my privacy!!

Glad to have you on the Emerald Coast--you will love it here.

Myke Triebold, GRI, LMC, SFR, ABR
850-305-6256
MykeSaysSold@aol.com
1 vote Thank Flag Link Mon Mar 4, 2013
Here is the bottom line ----- if you want the loan you better make the underwriter happy. It is JUST that simple. There is no law that says they must lend you money so they can do just about anything to get happy. If you don't like it say no and be ready for them to say that back at ya. I think it is legal for them to ask those questions.
1 vote Thank Flag Link Mon Mar 4, 2013
My friend is a young vet wanting a VA loan. He's just been hired by the city and is in the police training program. He's a new, full time city employee, with benefits and $4300/mo salary. Upon finishing the training, he'l receive a step increase/ pay raise. Can he purchase a home now, or must he wait til after he's done with his training program.
0 votes Thank Flag Link Tue Nov 4, 2014
I don't really think there is anything illegal about asking detailed questions. I am sure that some of the questions were just asked to build a relatonship with a client. If you don't want to answer the questions, that is your choice. You can answer the question with a question and find out what would be the results of not answering.
0 votes Thank Flag Link Tue Mar 5, 2013
What's legal.....good question!

This is the "tip of the iceberg" compared to other questions requested of borrowers. Have some cossed the line? Without question, some have taken liberty and ventured too far into an individuals personal life.

If an individual feel this is the case, the logical progression would be to take their concern to an attorney for their input.

Best wishes,

Bill
0 votes Thank Flag Link Tue Mar 5, 2013
Us, you tell? But you wonder about whether a lender should know this?

Glad you got things squared away.

All the best,
0 votes Thank Flag Link Mon Mar 4, 2013
If they don't, call me and we can get it done for you. :)
0 votes Thank Flag Link Mon Mar 4, 2013
Thanks everybody! That makes me feel better. We are here to stay. We love it here, and want what is best for our 2 year old. Hoping our answers satisfy them. :)
0 votes Thank Flag Link Mon Mar 4, 2013
I just love tim moores answer. Yes throw some raw meat in the cage!
0 votes Thank Flag Link Mon Mar 4, 2013
The underwriter just wants to have that "Feel Good" feeling about you. Your answer made good sense. Underwriters are strange people and are never the life of the party types. Throw some meat under their cage and it makes them happy. :-)
0 votes Thank Flag Link Mon Mar 4, 2013
I am a lender here in the Panhandle of Florida. Please know that we have a lot of people buying 2nd homes and investment properties and that there are sometimes questionable occupancies. That being said, I would just write up exactly what you wrote above to satisfy your underwriter and get the house you want to buy.
0 votes Thank Flag Link Mon Mar 4, 2013
We answered them. I just had no idea that you had to explain yourself to buy a house here. :)
0 votes Thank Flag Link Mon Mar 4, 2013
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